India’s finance minister Arun Jaitley today presented his first budget in parliament as the government looks to reduce fiscal deficit from 4.1 per cent of GDP this year to 3 per cent in the 2016/17.
There was nothing substantial in the budget for NRIs, apart from plans to set up an NRI fund to the clean up the river Ganga. The government said it would allocate about 20 billion rupees to rejuvenate the river.
Here are a few reactions to the budget from Indian businessmen in the UAE.
Dr Azad Moopen, chairman and managing director, Aster DM Healthcare
I welcome the maiden Modi budget presented today as it is very futuristic growth-oriented. Budgets can’t be a one-stop, one-time solution, but has to be seen on longer perspectives for traction and vision. By opening up investment barriers and allowing foreign direct investment in many areas, the finance minister has given a clear indication that he is doing the balancing act of growth without inflation.
There is hardly anything to cheer about for non-resident Indians (NRIs) in the budget. It seems the new government [has] sidelined the NRI community and did not give importance to this very potential group.
From a healthcare point of view, the budget should have outlined a road map for comprehensive inclusive solutions. Five billion rupees for new AIIMS [medical colleges] in four states is a good sign. Some of the key components of the budget, such as providing special treatment packages for senior citizens, incentives for visually challenged people and other welfare initiatives will help [to] boost the social development.
The budget disregarded demands to increase GDP allocation on healthcare. India with a dismal 2 per cent GDP spend is one of the lowest among emerging [markets] in healthcare expenses. It is important that this is increased to at least 4 per cent. Opening up of insurance sector to FDIs may help to increase the insurance penetration in this area.
I hope that 7 to 8 per cent growth in three to four years can be achieved by cutting red tape and rolling out red carpet.
Yusuffali MA, managing director, Lulu Group
A realistic budget with long-term view rather than relying on quick fix remedies or populist sops. From [an] industry point of view, I am pleased to note bold steps like FDI in insurance and defence sectors, which is sure to boost many related industries and generate much needed employment. As a person who has been actively involved in India’s first public private partnership (PPP) initiative, the Kochi International Airport, I fully endorse the finance minister’s thrust in this direction. India badly needs major boost in infrastructure development and PPP is the best way forward.
Innovative steps like startup fund and Skill India are right steps forward, as India is known for its human asset and youth will be better equipped to go up to the next level. Needless to say the high funds allocated for highways development, agriculture sector and education sector especially for the girls are need of the hour and will surely have a major long-term impact on our future.
The introduction of e-visa and along with creating of tourism circuits will give fillip to tourism sector, which I think can be grown further in synch with current global trends. Obviously hiking of income tax limits and cheaper loans is sure to bring smiles on the faces of a large segment of our population, so is the special emphasis given to empowerment and security of women.
From an NRI point of view, the hiking of duty free allowance to 45,000 rupees will be welcomed by many of us, especially during the current holiday season. “
Rizwan Sajan, chairman, Danube Group and Danube Properties
I am pleased to see that after a long time the government has taken bold steps to bring in fiscal prudence. It is an endearing attempt as a whole to meet the expectations of the masses including much needed relief in income tax and raising tax exemption on home loans. The country had high hopes from Mr Modi after giving him a huge mandate and had been waiting for “achche din” [good days] to come.
As a result of the FDI proposed in different sectors like insurance and defence, it will give the economy a necessary boost, put it back on growth path to 7 per cent to 8 per cent from current sub-five level and create more jobs. I personally feel, with finance minister’s assurance on better infrastructure and job opportunities, it will help [to] meet the aspirations of the poor and also ensure their anti-poverty programmes are well targeted.”
BR Shetty, chief executive, NMC Healthcare and managing director and chief executive, UAE Exchange
The union budget of 2014-15 is very special for every Indian, as it is the first real test for the new government, watched keenly by an entire nation’s electorate which voted the government to power believing that it would, through its forward-looking approach, give fillip to a nation rearing to take on the centerstage of the world again. From what has come out so far, there are many aspects of the budget which affirms the vision of the government to bring about all-round development in the country, with emphasis on manufacturing, job creation, and skill building.
The emphasis given to FDI, banking sector development, healthcare, infrastructure, and rural development promises to take us much ahead as a nation. New banking licences being considered would help the government’s and RBI’s [Reserve Bank of India] vision of bringing every household within reach of banking services, and to impart financial literacy to all. In simple ways, the banking sector helps the rural population bridge the good times and bad times through microfinance choices and saving opportunities. As one of the banking licence aspirants, UAE Exchange trusts there is a whole lot that banks can contribute in this area.
The initiative of the government to empower women, marginal farmers, and labourers through the ‘financial inclusion mission’ would be far-reaching. The establishment of AIIMS in each state, affirms the vision of the government to bring quality, affordable healthcare to all.
Y Sudhir Kumar Shetty, chief operations officer-global, UAE Exchange
The forward-looking approach of the new government reflects in the budget, with emphasis to improve the quality of life of the rural population of the country through improvement of the banking and healthcare sectors, betterment of the infrastructure facilities, and support for the manufacturing sector.
The agenda that the government has set to take financial literacy to all, through schemes like financial inclusion mission promises much. With easing of the FDI regime, India would be able to attract global investors, which would be a real booster for capital inflows. The mission set by the government to bring electricity to every Indian household by 2019, is a harbinger of good times ahead for a nation marching forward without worries of an urban-rural divide. Like every Indian, I am pinning my hopes on this budget to contribute in building a newly empowered India.
business@thenational.ae
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